Untitled - Oxfam Blogs
Untitled - Oxfam Blogs
Untitled - Oxfam Blogs
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Impacts of Price Hikes<br />
on the Lives and Livelihoods<br />
of the Rural Poor<br />
Figure 3.7: Production accounting for Cassava in Xy commune (Huong Hoa, Quang Tri)<br />
12000<br />
Cassava in Quang Tri<br />
'000 VND per hectare<br />
10000<br />
8000<br />
6000<br />
4000<br />
2000<br />
0<br />
Crop<br />
2006/2007<br />
Crop<br />
2007/2008<br />
Gross income<br />
Transaction<br />
Transportation<br />
Buying food for<br />
mutual harvesting<br />
Source: Data provided by local people in Xy and processing enterprise (August 2008)<br />
Cassava farmers are worse off when income is converted into rice. In 2007 they could sell the output of<br />
one ha of cassava and buy 1.6 tons of regular rice or 1.4 tons of sticky rice. In 2008 they can only buy<br />
0.9 tons of regular rice (down 43 percent) or 1.1 tons of sticky rice (down 19 percent) (Table 3.6).<br />
As output begins to decline farmers react by expanding the total acreage in order to maintain the same level<br />
of income. However, available land in new residential areas is limited while they can not return to their former<br />
residential area for cultivation because there is no road access for vehicles. In response to soil degradation they<br />
use the traditional methods of crop rotation. However, given the growing population and lack of land, such a<br />
solution becomes increasingly difficult to implement. It is projected that the output of the next crop 2008/09<br />
will be further reduced. This represents a real challenge to poverty reduction efforts in Xy commune.<br />
Table 3.6: Correlation between cassava sales and rice purchase in Xy commune<br />
(Huong Hoa, Quang Tri)<br />
Crop<br />
2006-2007<br />
Crop<br />
2007-2008<br />
Rise (+) /Fall (-)<br />
( percent)<br />
Total cassava acreage of the commune (ha) 199 244 + 22.6<br />
Fresh cassava output (ton) * 2,800 2,500 - 10.7<br />
Average cassava productivity (ton/ha) 14.07 10.25 - 27.1<br />
Average selling price (VND/kg) 700 1000 + 42.9<br />
Average value of output (VND) 9,849,000 10,245,900 + 4.0<br />
Buying price of regular rice (VND/kg) 6,000 11,000 + 83.3<br />
Buying price of sticky rice (VND/kg) 7,000 9,000 + 28.6<br />
Cassava output converted to regular rice output (kg) 1,642 931 - 43.3<br />
Cassava output converted to sticky rice output (kg) 1,407 1,138 - 19.1<br />
(*) Fresh cassava output is calculated according to data obtained from the processing plant, exclusive of a small amount of dried cassava<br />
Source: Reports of Xy commune and data of the tapioca processing plant (July-August 2008)<br />
Poor people with small scale production are worse-off. As cash income or income converted into PPP<br />
decreases, the effect of economies of scale becomes more apparent at all the study sites. The maize farmers<br />
in Dak Lak say “if we can cultivate 2-3 ha then we will be able to save some money. If we do less than one<br />
ha then we will not”. The poor often have limited access to land and can not expand or hire more land as<br />
the non-poor do.<br />
41